Green Slip reforms refunds

A partial refund is now being offered to eligible people.

The deadline for claiming the Green Slip refund has been extended until 30 June 2019.

CTP Green Slip prices were reduced for most classes of vehicles* from 1 December 2017 when the new scheme started. So, if you purchased or renewed your Green Slip with a start date before 1 December you may have paid pre-reform prices.

The refund will apply to the owner of the vehicle as at midnight 30 November 2017 and will be calculated on a pro-rata basis. That is, the closer you purchased a policy to 1 December 2017, the greater your refund will be.

See the table of refund estimates for 12 month policies. These are based on average premiums by vehicle class and the month the Green Slip started. Six-month policies may also be eligible for the refund if their start date was towards the end of 2017.

See the questions and answers below for more information.

*Motorcycle owners will not receive a refund. Instead, injured motorcycle riders, particularly those at fault in the accident, will get more benefits under the new scheme. See Question 12 below.

Refunds for most private passenger vehicles will range from $10 - $120.

The refund is the difference between the old scheme price and new scheme price, calculated on a pro rata basis. That is, the price difference for the part of your Green Slip remaining after 1 December 2017.

The closer your Green Slip’s start date was to 1 December 2017 the greater the refund will be because a greater portion of your policy was paid under the higher old scheme price.

Green Slip prices are calculated taking into account the class of vehicle and its registered location, therefore refund amounts will also vary depending on the class of vehicle and its location.

People do not automatically renew their Green Slip with the same insurer. Many people use SIRA's Green Slip Check to shop around for the best price.

The Government does not want to encourage people to stay with their current insurer as the only means by which they can receive the refund. Especially in instances where a better price can be attained from another insurer.

Setting a minimum refund amount of $10 reduces the administration costs for small refund amounts that may otherwise go unclaimed.

This will allow additional cost savings to NSW motorists with refunds under $10 contributing to a reduction in the Fund levy next year, which will further contribute to a reduction in Green Slip prices.

The Fund levy (previously known as the Medical Care and Injury Services levy) is a component of all Green Slips. It covers public hospital and ambulance services for anyone injured in a motor accident on NSW roads. It also funds the Lifetime Care and Support scheme, which pays lifetime treatment, rehabilitation and care for people who have been severely injured on NSW roads and the insurer’s administrative costs of running the CTP Green Slip scheme.

Six-month policies purchased last year that expired before 1 December are not eligible for the refund. However, if you renewed or purchased a six-month policy later in the year with a start date before 1 December then you may be eligible for a refund.

Your eligibility and refund amount will depend on the type of vehicle, the policy start date and the location of the vehicle.

Six-month policies purchased in Sydney and outer metro areas are likely to be eligible for a refund if they had a start date from August last year onward, and in country areas with a start date from November last year onwards.

This is because the average price for Green Slips is cheaper in country areas than in metro areas. Under the previous scheme, the average CTP premium for a passenger vehicle in country NSW was $481 compared to $710 for Sydney metropolitan.

The reduction in CTP premiums under the new scheme is therefore less in country areas than in metro areas ($58 for country NSW compared to $157 for Sydney metropolitan). The refund is a partial reimbursement for this reduction in premiums.

Under the new CTP scheme, prices have dropped in all parts of NSW for motor vehicles (except motorcycles) and prices will continue to be cheaper in country areas.

Green Slip prices have not come down for motorcycles under the new CTP scheme and therefore there is no refund for motorcycles.

With the new six-month no-fault period, injured motorcycle riders, particularly those at-fault in the accident, now receive more coverage and benefits including weekly income payments and medical costs.

Their prices have remained similar to the previous scheme, unless there is a change in their risk factors resulting in a higher premium, in which case it pays to use SIRA’s Green Slip Check and shop around for the best price.

Motorcycle riders are more likely to be injured in an accident than other types of vehicles. They only make up 4% of registrations yet account for 12% of injury accidents.

Another reason they are not getting a refund/reduced premiums is that the costs of their injury claims are significantly higher than injuries in any other class of vehicles. The average cost of a motorcycle injury claim is between $250,000 and $300,000 (compared to around $100,000 for other vehicle class injuries). With the new no-fault scheme for the first six months, claims costs for injured motorcycle riders will increase.

Source: NSW Crashlink database from the Centre for Road Safety (Transport for NSW).

The registered owner of the vehicle as at midnight 30 November 2017 according to Roads and Maritime Services (RMS) records will be eligible for the refund.

If you purchased a vehicle just prior to 1 December then you must have also lodged the transfer of ownership papers by 8 December 2017 to receive the refund. If you did not transfer the vehicle ownership into your name by 8 December 2017 then the refund will go to the previous owner.

If you purchased a vehicle with an existing policy after 30 November 2017 then the refund will also go to the previous owner.

We considered the option of a gradual reduction in prices starting from mid-2017. However, as the legislation was only passed in March 2017, much of the rules and definitions that have an impact on prices were decided in the latter half of 2017..

Also, a large number of people purchased their Green Slip before the legislation was passed so the only solution for this group is a refund.

Under the new CTP scheme the average cost of Green Slips has come down for most vehicle owners. For some motorists though, changing circumstances may have resulted in an increase in the price of their Green Slip compared to their last policy. This increase however is less than it would have been without a new CTP scheme. Changing circumstances include:

Adding a young driver to the policy

Having an ‘at-fault’ accident

Vehicle entering a higher risk category due to being a year older

Incurring demerit points

Moving from a country to metro location

There were also changes to how the Fund levy is calculated that reduced this part of the premium for some people and increased it by a small amount ($14 average) for others. Plus an additional $11 for new lifetime benefits for seriously injured people. You can read more here.

Before renewing your Green Slip, you may want to compare the price with other insurance companies using our Green Slip Price Check.